In analyzing assessment and targeting of the marketplace for the Ford Mustang, I have conducted bot secondary research, using the research of others, and original research, collecting original data to verify an idea. While I have found successes in both methods, I lean towards a preference for secondary research. Using secondary research, I was able to take a variety of information and glean from it my own analysis of the concept as a whole. This allowed me more of a global view of the research I was gathering, allowing me to best shape my own objective opinion.
When conducting original research, it was done on a very small scale compared to the information available as secondary research. Challenges with this included a true assessment of demographic and preference. On a larger scale, I can see definite value in original research.
Interestingly though, I did find consistencies between the published information and my research. Just as I found negative comments regarding the Mustang on many blogs, there were some people surveyed the were very negative in every dimension of the brand personality scale. And just as there were rave reviews for the Mustang, there were those that clearly favored the Mustang in the survey results. I did observe an inconsistency though in that not all surveyed consumers supported or were bought into the marketing message delivered by Ford.
Generally speaking though, I find the most success in the combination of the two types of research, drawing my own correlations between the larger and smaller scale information collected both by myself and by others.
Tuesday, April 3, 2012
Competitive Intelligence
"Competitive intelligence refers to the act of intentionally and purposefully gathering information from every source possible to ascertain customer satisfaction, degree of competition, market evolutions, and whatever else can be gleaned."
I appreciate and agree whole-heartedly with the concept that companies are often wasteful of and inattentive to valuable information available through their employees and their customers.
Customer Satisfaction
I first began collecting my competitive intelligence by researching customer satisfaction. I quickly found information at About.com Mustangs indicating that based on independent studies and research, the 2008 Mustang ranked number two in the four-seat convertibles category. A separate study indicated that the Ford Mustang Shelby GT500 ranked second place. As cited in the same resource, Mark Fields, president of The Americas, Ford Motor Company said, "The progress is real, and it’s encouraging, but we’re not letting up. We’re working hard to win customers back with strong product quality and a line-up of vehicles people really want." This indicates that Ford recognizes how consumers view the vehicle in comparison to other makes of vehicles.
Comparison
Regarding the degree of competition, much information is widely available comparing the Mustang, Camero, and Challenger. The challenge is in identifying what information is provided by objective sources rather than subjective opinions, and also in identifying which criteria compared amongst the various sources is relevant. A reputable source for information is Motortrend.com. Here performance comparisons are available, rating the three vehicles in a numbers of categories. Here, positive results are found for the Mustang, indicating that "The galloping-away winner this time out is the Ford Mustang GT. It's simply the one pony car most of us covet, and it's the one that hews closest to the original concept of a lightweight (they weren't called draft-horse cars, after all), nimble body and chassis choc-full-o' V-8 muscle." (Read more.)
Evolution
While legendary and using the success of that legend to promote the vehicle, the Ford Mustang has nonetheless evolved since its launch in 1964. The evolution of the vehicle and specifications of the different model years can be reviewed at http://www.mustangevolution.com/mustang-history/.
Understanding the evolution of a vehicle, its popularity, and economical and societal circumstances that may impact purchasing behaviors can be extremely successful for a company in identifying future successes.
Something else Ford has done to glean competitive intelligence is their Contact Us option on their website with the first line of information reading "Your complete satisfaction is of primary importance to us." It is truly intelligent of an organization to invite information from its customers.
I appreciate and agree whole-heartedly with the concept that companies are often wasteful of and inattentive to valuable information available through their employees and their customers.
Customer Satisfaction
I first began collecting my competitive intelligence by researching customer satisfaction. I quickly found information at About.com Mustangs indicating that based on independent studies and research, the 2008 Mustang ranked number two in the four-seat convertibles category. A separate study indicated that the Ford Mustang Shelby GT500 ranked second place. As cited in the same resource, Mark Fields, president of The Americas, Ford Motor Company said, "The progress is real, and it’s encouraging, but we’re not letting up. We’re working hard to win customers back with strong product quality and a line-up of vehicles people really want." This indicates that Ford recognizes how consumers view the vehicle in comparison to other makes of vehicles.
Comparison
Evolution
While legendary and using the success of that legend to promote the vehicle, the Ford Mustang has nonetheless evolved since its launch in 1964. The evolution of the vehicle and specifications of the different model years can be reviewed at http://www.mustangevolution.com/mustang-history/.
Something else Ford has done to glean competitive intelligence is their Contact Us option on their website with the first line of information reading "Your complete satisfaction is of primary importance to us." It is truly intelligent of an organization to invite information from its customers.
Suggestions for Future Marketing Actions
Ford has been clever in how they have marketed the Mustang. The legend of the vehicle sold it for decades, and Ford has smartly been using this legend in its advertising. As strong as this legend though, survey research indicates that the Ford scored lower in nearly all categories than the Dodge Challenger and Chevrolet Camero, both featured below.
Future marketing actions could be done a number of ways. Ford could feature a head-to-head comparison, highlighting specific features of the vehicle and how it favorably compares to the other vehicles. Another direction to take could be for Ford to conduct additional independent market research, identifying areas of opportunity that consumers perceive as being less successful in the Ford than in the other models, then specifically target and market to those dimensions. This could truly highly the attributes of the vehicle itself promoting the vehicle both on its legend and its merits.
Assessing the Marketplace
Introduction
The Ford Mustang is a vehicle first introduced in 1964 but remains popular today in part to the legend of the vehicle. To further assess the marketplace for this vehicle, primary finding from a completed product analysis matrix and digital collage will be discussed. We will take a deeper look into the consumers themselves by reviewing consumers who purchase the Ford Mustang. Lastly, we will assess the 4 Ps of the Ford Mustang, consumer preferences and the company’s strategy, and critically assess the company’s marketing mix strategy.
Primary Findings From the Product Analysis Matrix
In reviewing findings from the product analysis matrix, major assertions can be made regarding consumers targeted for the Ford Mustang. Through analysis of Ford’s website and marketing campaigns, a target customer may be between the ages of 25 to 40, as indicated by the company’s website (Ford, n.d.a.). Photographs in the vehicles gallery feature primarily the vehicle, but those with people in them appear to be in this range. Ford’s most recent commercial for the Mustang also features individuals within this age range (FordMustang, 2012). A younger demographic is also indicated by the Mustang customizer available online and the downloadable app. The success of this is evident in the over 4 million digital Mustangs crafted on the website since fall, and a 62 percent increase in Facebook fans (Koken, 2012). Also dominantly featured in photographs and commercials are men. There is only one photo featuring a woman without a man with her, and that features her looking into the car from the outside. Otherwise, men or couples are the main feature. It can be inferred that the targeted income level for consumers is between $30000 to $90000. This range is so broad because purchase options for the Ford Mustang start at $21,605 but go up to $54,605 depending on the features and specifications desired by the consumer (Ford, n.d.b.). Education levels targeted may be some college or college completion. The commercial for the new 2013 Mustang begins by featuring a tall, attractive woman who is well dressed and appears to be successful, the chef of a swanky restaurant, and lastly what appears to be a college student on a bike (FordMustang, 2012).
Now that the target consumer for the vehicle has been identified, it is appropriate to attempt to interpret why the consumer may purchase this vehicle. Research indicates that those who purchase a Mustang do so for emotional reasons. The website and current advertising really focuses on helping consumers “find your inner mustang”. From the performance to the customization, it’s all about the experience of owning a Mustang, not the functionality of it. As such, the “need” is really more of a social or personal esteem type of need; the experience received from owning the vehicle takes precedence over the base function of transportation. Aspects of the vehicle that may be important to the consumer are the price or the model of Mustang available. There are different engines available, as well as body style options of a standard coupe or convertible. There are also performance packages, technology options, and interiors designs available. Again, the ability to customize and design the perfect Mustang for each individual consumer is important. Because the purchase of a Mustang is an emotional one, the sphere of influence for the decision making process would include spouses that may share the income as well as any children as the vehicle is a two door sports model and not a family-friendly design.
Primary Findings From the Digital Collage
As mentioned above, research led to the discovery that the purchase choice of a Ford Mustang is truly an emotional one. It is not practical for a family car, meant as a working vehicle, or beneficial in rural locations or poor weather conditions. External factors that may influence a consumer’s decision in purchasing this vehicle may be life priorities, social factors, goals, or images. A purchaser may appreciate the persona associated with the image of a Mustang, a cool, powerful muscle car. The decision to purchase a Mustang is influenced by life priorities in that a purchaser likely will not have children or monetary commitments to sway them from purchasing a car that is more frivolous by nature. Socially, the consumer may appreciate the image of passion, fun, excitement, fulfillment, success, free-spiritedness, and cool. Elements that influence one’s lifestyle choices therefore may also influence the decision making process for the consumer’s purchase of the Ford Mustang.
Consumers Who Purchase the Ford Mustang
Identifying Ford’s possible target market for the Mustang doesn’t necessarily indicate the consumers that purchase the vehicle. The vehicle was first introduced in 1964, and a variety of consumers from an even broader range of demographics have purchased the vehicle. As cited in There’s Nothing ‘Average’ About Mustang or its Buyers (1998), Mustangs
attract a diverse group of buyers. They include women and men about equally, from young people starting out to leading-edge baby boomers rewarding themselves with some fun and self-expression. There's really no such thing as a typical Mustang buyer in terms of age, gender or income level.
Interestingly, the buyer demographics change significantly when you start considering different models of Mustang as well. Two major demographics were repeatedly mentioned in many sources but are perhaps best summed up in Ford Mustang Review (2010), “this car probably has two distinct customer demographics: college students looking for a cool car, and old guys wanting to relive their college days driving a cool car.” The Mustang appeals to both the young and the young at heart, to both men and women with varying income levels and purposes for purchasing. The Mustang appeals to buyers’ vanity and special interests, and has had a successful following of consumers.
4 P’s
The 4 P’s of successfully marketing to the identified target audience include product, price, promotion, and place. If the 4 P’s are not in alignment, the target market is at risk of not being reached. Having completed research to identify the target audience and marketing approach for the Ford Mustang, assumptions reached regarding the 4 P’s as they relate to the Ford Mustang. The first P to define is naturally the product. In this case, the product is a car that appeals to those who want a legendary sports car, with a variety of customizable options available to “dream up your ultimate Mustang”. The price for this vehicle starts at $21,605 with financing and leasing options available to the consumer. Promotion for the vehicle is done online and through social media, including its own website with customization options (http://ford.com/mustang/customizer), a customizer app available for smartphones, and Facebook. Also, Ford offered a sneak peek of the new 2013 Mustang via Google Hangout ( http://gplus.to/fordmotorcompany.), YouTube, and Facebook before premiering the ad nationally during the Daytona 500. Lastly, the Ford Mustang is available new nationwide through Ford dealers. Consumers can design their perfectly customized Mustang on Ford’s website, print off the specifications of their vehicle, and take it to their local Ford dealership for fulfillment of their request.
Consumer Preferences and Company Strategy
Consumer preferences for the Ford Mustang may all be interested in the sporty design, but purchasing depends on the available options for the vehicle and whether those options fit into the lifestyle and budget of the purchaser. Ford is attentive to the variations available to consumers. Ford Car Marketing manager Lee Jelenic commented that “Mustang owners are unique, independent and like their cars to reflect their personalities. The Customizer site and this [ad] spot pay homage to that" (as cited in “Ford Releases ‘Inner Mustang’ Commercial”, 2012). Ford’s strategy for the Ford Mustang offers the vehicle as an extension of the consumers themselves;
We know that Mustang owners are incredibly passionate about their car. Rather than just show features and benefits, our new ad demonstrates how people see the product as an extension of who they are. We believe that everyone has an inner Mustang just waiting to be unleashed (as cited by Koken, 2012).
The company strategy to allow a consumer to find their “inner Mustang” includes the availability of the customizer on the website, the downloadable app, as well as marketing using Facebook, Google Hangout, and strategic placement of ads during sporting events.
While consumer preferences have changed over time, part of the esteem that keeps people interested in the Mustang is the legend of it. Ford plays into this with the tag line for the 2013 Mustang, “All Legend. Zero Compromise”. As preferences change though, Ford will need to be careful to not become too dependent on the legend of the Mustang in maintaining consumer interest. For example, as gas prices increase, Ford will need to be attentive to the perception of the Mustang as being a frivolous gas hog and be able to sell the benefits of different specifications that positively impact gas mileage.
Critique of the Company’s Marketing Mix Strategy
Ford’s marketing mix strategy appears to be successful. The strategy for the Mustang plays on the nostalgia for consumers in the higher age range of the demographic, referencing the “legend” of the vehicle. In the website photo gallery, there is a picture of a little boy looking in the window of the mustang with the heading “do you remember the first time you pressed your face to the glass and exclaimed that four-letter word, ‘COOL!’?” (Ford, n.d.a). For those in the younger range of the demographic, the strategy focuses on social media, applications, and strategically placed commercials. By focusing on media elements that the target demographic is likely to see or use, they increase penetration and interest into that market.
Conclusion
The Ford Mustang is widely popular with a variety of consumers, but it is evident that Ford has a specific marketing strategy for this vehicle. Reviewing the product analysis matrix and digital collage discussed, we were able to identify specific information regarding the Ford Mustang and its possible target consumer base. By looking deeper into the consumers who purchase the Ford Mustang, we were able to see that a variety of consumers purchase the vehicle, including those in the target market. Lastly, we have identified the 4 Ps of the Ford Mustang, consumer preferences and the company’s strategy, and assessed the company’s marketing mix strategy identifying that it is successful but that caution should be used to prevent dependency on the legend as the sole or primary marketing strategy. Given the marketing focus, the Ford Mustang can continue to be dominant in the marketplace.
References
Ford. (n.d.a). 2012 Mustang. In Gallery. Retrieved from www.ford.com/cars/mustang/gallery/photos
Ford. (n.d.b.). 2012 Mustang. In Pricing. Retrieved from http://www.ford.com/cars/mustang/pricing/
FordMustang. (2012, February 23). The new 2013 Mustang [Video file]. Video posted to http://www.youtube.com/watch?v=HiyhXf_KVc0
Ford Mustang Review. (2010, July 7). Old Boys Toys.com. Retrieved from http://oldboystoys.com/2010/07/07/cars-reviews/ford-mustang-gt-review/
Ford Releases “Inner Mustang” Commercial. (2012, February 27). Retrieved from http://www.allfordmustangs.com/articles/ford-releases-inner-mustang-commercial-1403.shtml
Koken, Alexandra. (2012, February 27). 4 million digital Mustangs crafted through ‘Ford Mustang Customizer’, new Inner Mustang campaign launched. egmCarTech. Retrieved from http://www.egmcartech.com/2012/02/27/4-million-digital-mustangs-crafted-through-ford-mustang-customizer-new-inner-mustang-campaign-launched/
There’s Nothing ‘Average’About Mustangs or its Buyers. (1998, September 4). The Auto Channel Retrieved from http://www.theautochannel.com/news/press/date/19980903/press016689.html
Is the Manufacturer Hitting the Mark?
I previously conducted secondary research to assess the target market for the Ford Mustang (see post Assessing the Marketplace). Having conducted my own original research with a small number of consumers, I am able to better identify if the message being delivered by Ford for the Mustang is in alignment with consumer perceptions for the vehicle. In essence, I am able to discern if my research is consistent with the published information I previously evaluated.
In my secondary research, I found that people purchase the Ford Mustang for emotional reasons - not because it is a good family car or has a large towing capacity. This is evident in the dimensions assessed by my audience. They indicated through their survey results that the terms wholesome, cheerful, imaginative, upper-class, and charming are all somewhat descriptive of the Ford Mustang will the terms daring, spirited, and up-to-date are generally descriptive of the vehicle. These are all emotional concepts, allowing a consumer to make a connection with the vehicle that is based on a feeling, a desire, not a need. The areas of competence and ruggedness were assessed as being somewhere between not very descriptive and somewhat descriptive.
Overall, the vehicle is portrayed as being fun, cool, powerful, customizable, and indicative of one's personality. I can definitely see this presentation of the vehicle being agreed upon by consumers in the survey I completed regarding perceptions of the traits.
In my secondary research, I found that people purchase the Ford Mustang for emotional reasons - not because it is a good family car or has a large towing capacity. This is evident in the dimensions assessed by my audience. They indicated through their survey results that the terms wholesome, cheerful, imaginative, upper-class, and charming are all somewhat descriptive of the Ford Mustang will the terms daring, spirited, and up-to-date are generally descriptive of the vehicle. These are all emotional concepts, allowing a consumer to make a connection with the vehicle that is based on a feeling, a desire, not a need. The areas of competence and ruggedness were assessed as being somewhere between not very descriptive and somewhat descriptive.
Overall, the vehicle is portrayed as being fun, cool, powerful, customizable, and indicative of one's personality. I can definitely see this presentation of the vehicle being agreed upon by consumers in the survey I completed regarding perceptions of the traits.
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